With Africa requiring up to $240 billion annually to meet its energy and climate goals, attracting investment is more crucial than ever. A consistent theme emerging across the continent is the need for stable and transparent regulatory frameworks to foster investor confidence and drive sustainable development. Such frameworks provide the clarity and consistency investors need, directly influencing the flow of capital into the energy sector.

In markets like Nigeria, the introduction of the Petroleum Industry Act (PIA) in 2021 has been a significant step toward creating a more transparent and investor-friendly environment. The PIA aimed to overhaul the country's oil and gas sector by unbundling the Nigerian National Petroleum Corporation and establishing clearer governance structures. Fiscal incentives were introduced to attract both domestic and foreign investment, and a host community fund was established to ensure that local populations benefit from energy projects. While the full potential of the PIA remains to be realized, Nigeria has attracted over $17 billion in FDI into its oil and gas sector since its enactment, signaling a positive response from the investment community.

In Angola, recent amendments to its General Electricity Law in July 2025 mark a pivotal step toward liberalizing the country's electricity sector. These reforms aim to promote private sector involvement, enhance operational efficiency and support Angola's energy transition. By breaking the monopoly of the state-owned electricity transmission company and introducing competitive market mechanisms, Angola seeks to create a more attractive environment for investors. Similarly, Angola's oil and gas sector has seen targeted regulatory reforms designed to unlock its full potential. The introduction of the Incremental Production Initiative through Presidential Decree 8/24 in November 2024 has led to over $60 billion in investments committed for disbursement over the next five years. These reforms include fiscal incentives and a renewed focus on transparency, aiming to position Angola as a regional petroleum hub.

Conversely, in South Africa, the absence of clear and consistent regulatory processes has led to legal challenges that deter investment. In August 2025, the Western Cape High Court rescinded environmental permits granted to Shell and TotalEnergies for offshore oil exploration, citing inadequate environmental impact assessments and insufficient public consultation. This decision underscores the necessity for transparent and inclusive regulatory processes in gaining public trust and avoiding costly legal disputes.

These examples highlight a critical reality: without stable and transparent regulatory frameworks, even the most promising energy markets can falter. Investors seek environments where rules are clear, consistently applied, and where their investments are protected from arbitrary changes and legal uncertainties.

This year’s African Energy Week (AEW): Invest in African Energies conference, scheduled from September 29 to October 3 in Cape Town, presents a pivotal opportunity to address these challenges. AEW 2025 will convene key regulatory and policy leaders from across the continent to discuss strategies for enhancing investment climates through improved regulatory frameworks. The event aims to foster dialogue between governments, investors and civil society to promote transparency, accountability and sustainability in energy governance. By highlighting successful case studies and addressing challenges head-on, AEW 2025 seeks to chart a path toward a more resilient and investor-friendly African energy sector.

“The future of Africa's energy sector depends on the establishment of stable and transparent regulatory frameworks. While reforms like Angola's recent legislative changes offer a foundation, their success hinges on consistent implementation and institutional support. Simultaneously, lessons from other markets emphasize the need for inclusive and transparent processes to build public trust and attract investment. Events like AEW 2025 are instrumental in bringing together stakeholders to collaborate on creating enabling environments that foster sustainable energy development across the continent,” says NJ Ayuk, Executive Chairman, African Energy Chamber.